The Cabinet decision will also generate considerable employment, revive demand of cement, iron and steel industries as well as relieve stress in other major sectors of the economy.

By Onkareshwar Pandey

New Delhi, November 6, 2019: in a major decision, Prime Minister Narendra Modi led BJP government has approved setting up of a Rs 25,000 crore bailout fund to finance 1,600 stalled housing projects as it looks to boost the economy by kickstarting incomplete projects.

A total of 4.58 lakh housing units are stuck and around 1600 projects are stalled in the realty sector.

The Government has decided to finance 1,600 stalled housing projects comprising 4.58 lakh housing units across the country, Finance Minister Nirmala Sitharaman announced on Wednesday.

It was approved in a high-level meeting of Union Cabinet held under the chairmanship of Prime Minister Narendra Modi.

Announcing the decision, Finance Minister Sitharaman said the government will put in Rs 10,000 crore in this alternative investment fund (AIF) while SBI and LIC would provide Rs 15,000 crore, taking the total size to Rs 25,000 crore.

“A Fund has been set up to rescue stalled realty projects. The Cabinet has approved the establishment of a 'Special Window' to provide priority debt financing for completion of stalled housing projects in the Affordable and Middle-Income Housing sector,” Finance Minister said.

The Finance Minister said several meetings were held with stakeholders, builders, buyers, authorities, the RBI and other banks in the last two months, before taking this decision.

The Government’s move is expected to help relieve financial stress faced by a large number of middle-class homebuyers who have invested their hard-earned money. It will also release a large amount of funds stuck in these projects for productive use in the economy.

The Cabinet decision will also generate considerable employment, revive demand of cement, iron and steel industries as well as relieve stress in other major sectors of the economy.

The Union Cabinet today also gave nod to several other important proposals for welfare and development.

It has approved the Cadre Review of Posts and Telegraphs Building Works Service, Group ‘A’

The number of Duty posts was fixed as 105. The approval would result in strengthening the cadre structure both at the headquarters and in the field units of the Department of Telecommunications and Department of Posts on the basis of functional requirements.

It was also decided that there will be no fresh recruitment into the cadre which will be phased out in such a manner that there is no adverse impact on the incumbents.

The Cabinet gave ex-post facto approval for the MoU between India and Bangladesh on withdrawal of 1.82 cusecs of water from Feni River by India for drinking water supply scheme for Sabroom town Tripura.

It has also given ex-post facto approval to the MoU between India and Paraguay for strengthening cooperation in the field of Tourism. The MoU was signed in New Delhi on the 27th of September this year.

The Union Cabinet has also approved the signing of the Protocol amending the Convention between India and Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. An MoU is expected to be signed this month between India and Brazil in the field of health and medicine.

The Cabinet also gave ex-post facto approval to the MoU between India and Switzerland on Technical Cooperation in the field of Climate Change and Environment. It was signed in Switzerland on 13th September this year.

The Government has also given approval for the MoU between India and Guinea in the field of Renewable Energy, Ms. Sitharaman said.

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